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Financial statements
The share of a lender's loans that borrowers have stopped repaying.
For a bank or a finance company this is the main measure of whether the lending was sound.
Rising bad loans usually show up before the profit does. Below two is generally healthy for an Indian lender.
| Below 2% | Healthy loan book by Indian standards. |
|---|---|
| 2% to 5% | Some stress, worth watching the direction. |
| Above 5% | Substantial stress in the loan book. |
Rough conventions for an ordinary company; sectors differ. A range is not a buy or sell level.
The share of a lender's loans that borrowers have stopped repaying.
For a bank or a finance company this is the main measure of whether the lending was sound.
No. Gross NPA describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.